At a particular service operation, customers form a single queue that operates on a first-come, first-served basis.  There is one server.  Customers arrive at the rate of 12 per hour.  Using the current technology in place, the server can process 15 customers per hour.  Upgrades to the technology, as listed below, would allow the server capacity to increase.  For example, an expenditure of $1,000 would allow the server to process 16 customers per hour.  The manager wishes to insure that the time the average customer must spend in the system is less than or equal to 10 minutes.  What is the minimum amount of money the manager must spend on technology to meet that standard?             $1,000             service is 16 customers per hour            $3,000             service is 17 customers per hour            $5,000             service is 18 customers per hour            $7,000             service is 20 customers per hour            $10,000          service is 22 customers per hour Group of answer choices spend $1,000 spend $3,000 spend $5,000 spend $7,000 spend $10,000

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

At a particular service operation, customers form a single queue that operates on a first-come, first-served basis.  There is one server.  Customers arrive at the rate of 12 per hour.  Using the current technology in place, the server can process 15 customers per hour.  Upgrades to the technology, as listed below, would allow the server capacity to increase.  For example, an expenditure of $1,000 would allow the server to process 16 customers per hour.  The manager wishes to insure that the time the average customer must spend in the system is less than or equal to 10 minutes.  What is the minimum amount of money the manager must spend on technology to meet that standard?
 
            $1,000             service is 16 customers per hour
            $3,000             service is 17 customers per hour
            $5,000             service is 18 customers per hour
            $7,000             service is 20 customers per hour
            $10,000          service is 22 customers per hour

Group of answer choices
spend $1,000
spend $3,000
spend $5,000
spend $7,000
spend $10,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.